The Oakland, Calif.-based consumer products maker today reported net income of $46 million, or 20 cents a share, compared with $79 million, or 33 cents, for the same period a year ago.
Ad spending rose
Clorox said other products, such as Glad bags, Armor All protective wipes and Clorox 2 laundry additives, also saw sales and ad hikes, but currency losses and economic turmoil in Argentina, combined with a relatively low margin on ReadyMop, hurt profits.
The company plans to cut its Latin American workforce 6%, or by 150.
Chairman-CEO Craig Sullivan said research shows consumers still prefer ReadyMop to rival Procter & Gamble Co.'s Swiffer WetJet even as Swiffer has cut prices in half to reach parity at $25.
While ReadyMop margins are lower than the company average, the long-term payoff is in sales of replacement pads and cleaning fluid.